Arrears related to the Seventh Pay Commission will be paid in a single installment along with the salary for the month of August.
To expedite disbursement of arrears, it’s decided that arrears claims may be paid without pre-check of fixation of pay in revised scales of pay.
Facilities to disburse arrears without pre-check of fixation of pay won’t be available for Govt servants who have relinquished service on account of dismissal, resignation, discharge and retirement after date of implementation of Pay Commission’s recommendations.
Finance minister Arun Jaitley, last month, said that the government has by and large accepted the recommendations of the Seventh Pay Commission.
The pay commission award will cost the exchequer Rs 1.14 trillion ($16.88 billion) in 2016/17, Jaitley said.
The Union Cabinet last month approved the implementation of the Seventh Pay Commission recommendations from January 1, 2016. Stating that arrears to government employees would be paid this year itself, Jaitley said that the government will set up various expert groups to decide on allowances.
The hike in salaries, allowances and pension would entail an additional burden of Rs 1.02 lakh crore, or nearly 0.7 per cent of GDP, to the exchequer.
Entry level pay will increase from Rs7,000 to Rs 18,000 per month. Government salaries will be distinctively higher than private sector salaries after 7th Pay Panel, so there should not be any protests, the finance minister said.